Dow falls 200 points after Trump threatens – Business News
Stocks fell on the open Thursday as traders reacted to renewed commerce tensions after President Donald Trump threatened to impose unilateral tariffs on key U.S. trading companions.
The Dow Jones Industrial Average dropped 230 points, or 0.54%, to 42,634.95 after the bell. The S&P 500 slid 0.28%, whereas the Nasdaq dipped 0.24%.
The small-cap Russell 2000 additionally declined, shedding 0.38%.
President Donald Trump mentioned he plans to unilaterally impose tariffs on dozens of trading companions, reviving issues about a world commerce warfare and sending a jolt by financial markets. Shutterstock
Meanwhile, the CBOE Volatility Index (VIX), Wall Street’s “fear gauge,” spiked more than 5%, signaling rising investor unease.
The market downturn got here hours after Trump, talking Wednesday night on the John F. Kennedy Center for the Performing Arts in Washington, confirmed that his administration intends to ship letters to US commerce companions within the coming weeks to formally set up new tariff phrases.
“We’re going to be sending letters out in about a week and a half, two weeks, to countries, telling them what the deal is,” Trump mentioned.
“At a certain point, we’re just going to send letters out. And I think you understand that, saying this is the deal, you can take it or leave it.”
Trump’s remarks come forward of a July 9 deadline, when the White House is anticipated to maneuver ahead with elevated tariffs on a big selection of imports except new commerce agreements are secured.
Dow Jones Industrial Average futures have been down 302 points, or 0.70%, at 42,606.00 earlier than the opening bell on Thursday. The S&P 500 futures slipped 37.25 points, or 0.62%. AP
The president has beforehand floated comparable timeframes, typically delaying or altering plans, however Thursday’s selloff suggests traders are bracing for concrete motion.
In April, Trump proposed across-the-board tariff hikes however put them on maintain for 90 days following a steep market decline. Since then, the administration has finalized solely a slender commerce framework with the United Kingdom and a momentary tariff truce with China.
That truce is now beneath strain. Officials from Washington and Beijing met in London earlier this week for high-stakes negotiations after either side accused the opposite of breaching phrases.
Trump mentioned Thursday that the US–China framework would come with uncommon earth and magnet exports from China, in exchange for the US loosening restrictions on Chinese scholar visas.
In April, Trump proposed across-the-board tariff hikes however put them on maintain for 90 days following a steep market decline. JOHN G MABANGLO/EPA-EFE/Shutterstock
When requested whether or not he would possibly lengthen the July 9 deadline to permit more time for offers, Trump mentioned, “But I don’t think we’re gonna have that necessity.”
Trump has shifted his strategy away from blanket multilateral negotiations and is now centered on bilateral offers with international locations corresponding to India, Japan, South Korea and members of the European Union.
Still, Commerce Secretary Howard Lutnick famous Thursday that negotiations with the EU have been troublesome, pointing to the complexity of coping with a 27-nation bloc. “It’s frustrating,” he mentioned.
With Trump reaffirming his tariff plans and few commerce offers finalized, Thursday’s sharp losses counsel markets are actually pricing in the actual chance of a broader financial confrontation within the weeks forward.
The Post has sought remark from the White House.
